TECHNOLOGIES & SECURITY STANDARDS FOR E-BANKING
E-banking (Electronic Banking)
With advancement in information and communication technology, banking services are alsomade available through computer. Now, in most of the branches you see computers being used torecord banking transactions. Information about the balance in your deposit account can be knownthrough computers. In most banks now a days human or manual teller counter is being replaced by the Automated Teller Machine (ATM). Banking activity carried on through computers andother electronic means of communication is called ‘electronic banking’ or ‘e-banking’. Let usnow discuss about some of these modern trends in banking in India.
Automated Teller Machine
Banks have now installed their own Automated Teller Machine (ATM) throughout the country atconvenient locations. By using this, customers can deposit or withdraw money from their ownaccount any time.
Banks are now providing Debit Cards to their customers having saving or current account in the banks. The customers can use this card for purchasing goods and services at different places inlieu of cash. The amount paid through debit card is automatically debited (deducted) from thecustomers’ account.
Credit cards are issued by the bank to persons who may or may not have an account in the bank.Just like debit cards, credit cards are used to make payments for purchase, so that the individualdoes not have to carry cash. Banks allow certain credit period to the credit cardholder to make payment of the credit amount. Interest is charged if a cardholder is not able to pay back the creditextended to him within a stipulated period. This interest rate is generally quite high.
With the extensive use of computer and Internet, banks have now started transactions over Internet. The customer having an account in the bank can log into the bank’s website and accesshis bank account. He can make payments for bills, give instructions for money transfers, fixeddeposits and collection of bill, etc.